________ is a method of financing frequently employed by retailers of "big ticket items"-autos and major appliances.
A)Discounted installment contracts
B)Trade credit
C)Installment loans
D)Floor planning

Question

Quizplus · Accepted Answer

Floor planning is a type of financing used by retailers, particularly those who sell big-ticket items like automobiles and major appliances. It involves borrowing money to purchase inventory from a supplier or manufacturer, with the inventory serving as collateral for the loan. As the retailer sells the inventory, they repay the loan with interest. This allows the retailer to keep their inventory fully stocked without having to tie up their own cash reserves.

________ Is a Method of Financing Frequently Employed by Retailers